JPMorgan CEO Dimon Warns Again of Risks of a Downturn in the Credit Market

Golden Finance reports that on April 29th, JPMorgan Chase CEO Jamie Dimon once again warned that even after his bank and Wall Street competitors reported a strong quarter with resilient loan portfolios, the downturn in the credit market could be more severe than expected. Dimon stated on Tuesday at a meeting of Norway’s central bank investment management firm that, especially in the private credit sector, where over 1,000 companies are operating, this could mean that not all companies will emerge unscathed when the cycle reverses. He pointed out that some companies “may be very successful, but I can guarantee not all 1,000 are. Therefore, in my view, based on this and underwriting standards, we haven’t experienced a credit downturn in a long time, so when it happens next, the situation will be worse than people imagine.” He added, “It won’t be catastrophic, just worse than people think. By the way, that might also be the case for some banks.”